What is Maple Finance?
Maple Finance is an unsecured lending money market on Solana and Ethereum.
Background
Joe Flanagan and Sid Powell founded Maple Finance in 2021.
How Does It Work
The Maple ecosystem has four key participants: pool delegates, borrowers, lenders, and cover providers. Pool delegates are reputable trading firms that manage lending pools. Delegates onboard trusted borrowers and negotiate loan terms. After being onboarded, borrowers can deal loans with the pool delegate at a fixed interest rate and maturity. From here, lenders can then deposit into lending pools of their choice to earn yield. Cover providers are users that provide “first loss capital” for lending pools in the event of a default. The cover providers are paid 10% of the interest the pool generates to incentivize them to take on this risk.
Key Takeaways
- Maple Finance provides unsecured loans to reputable trading firms.
- They had provided loans to Orthoganal, which hit the protocol hard when they went under and defaulted on a $36M loan.
- Added RWA pool for trade receivables in January of 2023.